*🇺🇸US Senate Banking Committee Hearing on the Framework of Digital Assets: A Comprehensive Overview* Published: February 27, 2025 https://medium.com/roymavila/the-senate-banking-committee-hearing-on-the-framework-of-digital-assets-a-comprehensive-overview-a226cc22d1d3 *LIVE VIDEO:* https://youtu.be/C7iZ2lgoKCY?si=pQ9cb01dOTBv-Wuo *STABLECOIN REGULATION:* Stablecoins were identified as a *key area for IMMEDIATE LEGISLATIVE ACTION.* Their potential was widely recognized to enhance financial inclusion, streamline payments, and strengthen the U.S. dollar’s status as the world’s reserve currency. However, concerns about AML compliance, privacy, and systemic risks must be addressed. *Market Structure and Jurisdictional Clarity:* The hearing highlighted the need for clear rules determining whether digital assets are securities or commodities. This clarity is essential for providing a predictable regulatory environment and ensuring market participants can operate confidently. Zim Masari, Chief Legal Officer at Lightspark: Masari focused on the potential of stablecoins to revolutionize payments by enabling instant, low-cost transactions. She stressed the importance of robust reserve requirements, redemption guarantees, and a competitive landscape for stablecoin issuers. Masari also highlighted the need for strong anti-money laundering (AML) and privacy protections to address risks associated with digital assets. Tim Massad, Former Chair of the CFTC: Massad provided a critical perspective on the Genius Act, arguing that it falls short in several areas, including reserve requirements, bankruptcy protections, and enforcement mechanisms. He called for stronger credential standards for stablecoin issuers and a dedicated resolution process to ensure consumers can quickly recover their funds in the event of an issuer’s failure. Massad also cautioned against rushing to rewrite securities laws, advocating for a phased approach to market structure legislation. *Key Themes and Takeaways* Consumer Protection: Witnesses and lawmakers AGREED that consumer protection must be at the heart of any regulatory framework. This includes ensuring transparency, safeguarding against fraud, and providing recourse for consumers during losses. *International Competitiveness:* The lack of regulatory clarity in the U.S. has driven innovation and investment offshore, with jurisdictions like the EU and UK taking the lead in establishing comprehensive frameworks. Witnesses urged Congress to act swiftly to reclaim the U.S.’s position as a global leader in digital assets.